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New York Times: 'Criminal Wrongdoing' Found In GM Investigation

DETROIT (WWJ/AP) -- According to a report from The New York Times, Justice Department investigators determined there was criminal wrongdoing in General Motors' failure to disclose a defect with certain ignition switches which has been linked to at least 104 deaths.

The report states that the sides are negotiating what could be a record penalty.

A settlement could be reached as soon as this summer and the final number is expected to eclipse the $1.2 billion paid last year by Toyota for concealing unintended acceleration problems in its vehicles.

"G.M.'s eagerness to resolve the investigation — a strategy that sets it apart from Toyota, which fought prosecutors — is expected to earn it so-called cooperation credit, one of the people said. That credit could translate into a somewhat smaller penalty than if G.M. had declined to cooperate."

Some former GM employees will be investigated and could face criminal charges.

Through much of last year, GM had blamed the switches for 13 deaths but conceded the toll would rise. During a Congressional hearing on the switches in June, Rep. Diana DeGette, D-Colo., said the death toll could rise to 100 based on lawsuits and media reports.

GM knew about defective switches for more than a decade but recalled them only last year. The switches can slip out of the "on" position, causing the cars to stall, disabling some important safety features.

 

TM and © Copyright 2015 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2015 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

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